Broker Check

Flavors of Financial Folks

"What is the 'Securities And Exchange Commission - SEC?'
The Securities and Exchange Commission (SEC) is a government commission created by Congress to regulate the securities markets and protect investors."  

"What is a 'Registered Investment Advisor - RIA?'   
A Registered Investment Advisor (RIA) is an advisor or firm engaged in the investment advisory business and registered either with the Securities and Exchange Commission (SEC) or state securities authorities. A Registered Investment Advisor is defined by The Investment Advisers Act of 1940 as a "person or firm that, for compensation, is engaged in the act of providing advice, making recommendations, issuing reports or furnishing analyses on securities, either directly or through publications." An investment advisor has a fiduciary duty to his or her clients, …”  

"What is an 'Investment Advisory Representative - IAR?'   
Personnel that work for investment advisory companies whose main responsibility is to provide investment related advice. According to regulations, IARs can only provide advice on topics on which they have passed the appropriate examinations." 

"What is the 'Financial Industry Regulatory Authority - FINRA?'
The Financial Industry Regulatory Authority (FINRA) is a regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's regulation committee. The Financial Industry Regulatory Authority is responsible for governing business between brokers, dealers and the investing public. By consolidating these two regulators, FINRA aims to eliminate regulatory overlap and cost inefficiencies."

"What is Series 6?   Series 6 is a securities license entitling the holder to register as a limited representative and sell mutual funds, variable annuities and insurance premiums. Holders of the Series 6 license are not permitted to sell corporate or municipal securities, direct participation programs and options. Series 6 may also refer to the exam granting the Series 6 license." 

"What is the Series 7? The Series 7 is the general securities registered representative license administered by the Financial Industry Regulatory Authority (FINRA) that entitles the holder to sell all types of securities products with the exception of commodities and futures." 


“What is a 'Registered Representative - RR'   A Registered Representative (RR) is a person who works for a brokerage company that is licensed by the Securities and Exchange Commission (SEC) and acts as an account executive for clients trading investment products such as stocks, bonds and mutual funds.

BREAKING DOWN 'Registered Representative - RR'  To become licensed as a Registered Representative to act as agent in the buying and selling of securities, a person must pass the Series 7 and Series 63 securities examinations, and be registered with a member of the Financial Industry Regulatory Authority (FINRA) or a self-regulatory organization (SRO)”  


(What Is) “The Difference Between Series 63, 65 and 66?   Once a prospective registered representative has passed the first core examination, usually the FINRA Series 6 or Series 7, one hurdle remains. That’s the Series 63, 65 or 66

In most states, a new registered securities rep must at least pass the 63 to satisfy state requirements. It has a 75-minute limit and 65 questions, of which 60 count toward the candidate’s score. It focuses on registering persons and securities under the Uniform Securities Act, along with industry ethics.

The Series 65 was the first exam that tested individuals wanting to provide fee-based investment advisory. It’s evolved into a 130-question exam with a time limit of 180 minutes. The minimum passing score is 94 correct, and the exam covers economics, investment vehicles, strategies and analysis, in addition to business ethics.

Most who take the 65 have yet to pass the Series 7 exam. They are professionals who work in fields related to financing, such as accounting, and those who wish to become investment advisor representatives.

The Series 66 combines the 63 and 65. Applicants must pass the Series 7 before taking the Series 66. It’s 100 questions and 150 minutes, and the passing score is 75%. It excludes the product, analysis, and strategy questions that comprise much of the Series 65 exam, since those were covered on the Series 7."  

"Insurance regulation   
Regulation of insurance companies, brokers and agents is handled by individual states. Many states adopt regulations and laws developed by the National Association of Insurance Commissioners (NAIC).

  1. Licensing - Insurance agents who sell insurance products generally must obtain a license from their home state. Includes financial planners who sell insurance products.
  2. Licensing of financial planners - In some states, financial planners who make generic recommendations about insurance coverage for a client may be subject to state registration or licensing."